‘The Worst is Yet to Come’
Business owners should start stocking up on beans and potatoes, because apparently the worst of the housing crisis hasn’t even hit yet.
“The worst is to come. .. typically, there’s a lag between when the economy softens and when defaults actually occur… Like all firms that hold these kind of mortgages, we’ll have some issues,”said Steven Kandarian, chief investment officer at Metlife Inc.
Kandarian says that once the current economic crisis ends, commercial mortgage delinquencies will still rise for two to three years. (more…)
Record High for Mortgage Delinquencies
During the first quarter, there were a record number of mortgage delinquencies this year–the highest, at least, since surveys of mortgage payments were established in 1972.
Though the government has been making valiant efforts to curb the crisis, it seems that job losses are simply stronger than the government. Even so-called reliable borrowers with the best credit ratings are experiencing difficulty with payments–and even foreclosure.
The delinquency rate overall is just over 12%. At this time last year, it was 8%. (more…)